Equifax Finance Blog » Eve Beckerhttp://blog.equifax.com
Thu, 30 Jul 2015 12:00:42 +0000en-UShourly1http://wordpress.org/?v=4.2.3First Credit Card? Six Tips for College Studentshttp://blog.equifax.com/credit/first-credit-card-six-tips-for-college-students/
http://blog.equifax.com/credit/first-credit-card-six-tips-for-college-students/#commentsFri, 30 Aug 2013 12:45:52 +0000http://blog.equifax.com/?p=6907College students have a lot to think about, and personal finances often take a backseat to coursework and extracurricular activities. But building a strong credit file is an important stepping stone to financial independence, and there are steps your college student can take now to positively impact his or her credit score.

“It’s really important to build a good credit history, especially for a younger adult,” says Andrea Browne, channel editor for Kiplinger.com. While it may be hard for a college student to imagine that the things he or she is doing right now will have an impact on finances down the line, it’s important to for him or her to understand that they will, says Browne.

Using a credit card wisely can help build a strong credit score. This is important because scores are usually checked when a person buys a car, rents an apartment, or applies for other credit cards or loans. By establishing good credit during the college years, your student will be off to a solid financial start on graduation day.

Consider these six tips for building credit:

1. Use credit cards responsibly. “One of the quickest ways to build up your credit score and your credit history is through smart credit card usage. That means you’re making credit card purchases, such as buying gas or groceries, and making sure that you pay the bill on time every month,” Browne says.

Even one or two late payments can affect a person’s credit score. If possible, pay the entire balance due each month, or at least pay more than the minimum due. And don’t max out a credit card—if you use too much of your credit line, you may lower your credit score.

2. Consider starting with a retail card for a specific store. “Retail cards are generally easier to qualify for, and they also help you establish a credit history just like a major credit card,” Browne says. “A retail card, as long as you are using it responsibly and paying the bill on time, will help prepare you for bigger expenses later in life.”

The downside, she adds, is that retail cards can have low spending limits and high interest rates, so your student could end up with high fees if he or she misses a payment.

3. Open a secured card. A secured credit card requires you to make a cash deposit equal to the card’s credit line. This deposit is used as collateral toward the account. “The deposit amount for a secured credit card can range from a couple hundred dollars to a couple thousand dollars, which is much more manageable for someone in college or just starting out in [his or her career],” Browne says.

Using a secured card responsibly can make it easier to qualify for an unsecured card (a traditional credit card that does not require a cash deposit). Comparison shop and review each option’s annual fees, application fees, and other charges.

4. Look for the best rates and lowest fees. You and your student may want to review the options for both secured and unsecured cards. Avoid cards with excessive balance transfer fees or late fees, Browne says, and look for annual percentage rates of under 15 percent. “A lot of times, the best rates are reserved for folks with the highest credit scores,” she notes. “You’re probably going to have to start out with whatever interest rates they give you.”

If your student isn’t able to get a great rate right away, he or she can continue to positively impact his or her score by making all monthly payments on time. Your student can also consider periodically checking in with the credit card issuer to see if it will lower his or her current rate.

5. Talk to your local bank. If you have a checking account or savings account at a bank, ask if it has a bundle deal for a credit card—a good option for a college student with limited credit history, Browne says.

Bundling can involve packaging a savings or checking account with a credit card, retirement account, consumer loan, and/or certificate of deposit. Before deciding to bundle accounts, your student should review each one individually and compare fees and prices to non-bundled accounts.

6. Read the fine print. A lot of us have a habit of not reading the fine print, Browne says, but it’s something your college student should do before applying for any credit.

“You should know the specific terms of the agreement, the annual fee, the interest rate, and the reward benefits, if any,” she recommends. Make sure your student checks closely to see if the interest rate will rise after a fixed period of time or after late payments.

By using credit cards responsibly, your college student can build a credit history and positively impact his or her credit score, setting the stage for a successful financial future.

A Chicago-based writer and editor, Eve Becker writes about personal finance, health and other topics. She is a former managing editor of Tribune Media Services.

]]>http://blog.equifax.com/credit/first-credit-card-six-tips-for-college-students/feed/1Nine Things to Know About Banking at Credit Unionshttp://blog.equifax.com/credit/nine-things-to-know-about-banking-at-credit-unions/
http://blog.equifax.com/credit/nine-things-to-know-about-banking-at-credit-unions/#commentsFri, 23 Aug 2013 12:21:09 +0000http://blog.equifax.com/?p=6798In an effort to save money on fees and support local institutions, millions of Americans—96 million to be precise—are turning to credit unions for their banking needs. Roughly 700,000 people joined credit unions in the first quarter of 2013 alone.

Like banks, credit unions offer checking accounts, make loans, and have ATM and online access. But credit unions are not-for-profit organizations that exist to serve their members rather than to maximize corporate profits.

“Credit unions are very unique institutions because we’re owned by our member-owners. What’s different from a bank is that there are no shareholders at credit unions,” says Paul Gentile, executive vice president of the Credit Union National Association, a trade association for the credit union system. “That means the credit union doesn’t have to try to drive high profits to raise shareholder value or to have a strong stock price.”

“That’s a powerful proposition today,” Gentile believes. “At a credit union, the money goes back to the membership in better rates and lower fees.”

Switching to a credit union doesn’t need to be an all-or-nothing proposition, says Greg McBride, senior financial analyst for Bankrate.com. “We’re not talking about severing a relationship completely with your existing financial institution,” he says. “You can often get the most bang for your buck by having a checking account at a credit union or local bank where the account is free and having your savings account with an online bank where you can get a better return. You can utilize the advantages of both and avoid any disadvantages.”

If you’re considering opening an account with a credit union, here are nine things to know:

1. Fees and loan rates at credit unions are generally lower, while interest rates returned are generally higher than banks and other for-profit institutions, according to MyCreditUnion.gov.

2. Membership is typically based on one’s employment, community, or membership in an association or organization, but eligibility might be broader than you’d expect. Community credit unions are open to those who live, work, or worship in a particular community. CUNA created ASmarterChoice.org to help people find a credit union near them. “You can’t join every credit union, but there’s certainly a credit union you can join,” Gentile says.

3. Through the CO-OP ATM Network and CO-OP Shared Branching, credit unions have joined together to offer widespread access to no-surcharge ATMs and credit union branches across the country. The CO-OP ATM Network has nearly 30,000 surcharge-free ATMs, more than 9,000 of which take deposits. ATMs with the triangle CO-OP logo can be found at many big box stores around the country.

5. Much as deposits at banks are insured through the FDIC, the funds of all federal and most state-chartered credit union members are insured up to $250,000 per individual depositor through the National Credit Union Share Insurance Fund (NCUSIF).

6. While credit unions may not have the same deep technological resources as banks, they offer online banking and other tech-friendly options like remote deposit capture (taking a photo of a check on a smartphone and depositing it that way). “People may think credit unions aren’t as tech-savvy as banks, when in fact they really are,” Gentile says, adding that the first financial institution to ever offer online banking was a credit union in the early 1990s.

7. Credit unions offer a full product suite, including mortgages, checking, credit cards, and CDs, though their offerings may not be as varied as those at banks.

8. Low-income credit unions provide financial services at reasonable rates in areas that are often underserved by banks. They also offer financial literacy workshops and credit counseling to help members get their finances back on track.

9. Because banks are often much larger than credit unions, banks can offer more loan and investment options, with robust online banking and customer service. Banks have “broader product lineups that can be desirable for more of a high-net-worth or more sophisticated individual who has a lot of varied financial needs and likes the convenience of having everything under one roof or having one point of contact,” McBride says.

As services at credit unions can vary, research your options carefully. If you need local access, ask if the credit union is part of the shared branch network. If you need online services, you may want to make sure it has a full suite of online options. You can learn more about credit unions at MyCreditUnion.gov.

A Chicago-based writer and editor, Eve Becker writes about personal finance, health and other topics. She is a former managing editor of Tribune Media Services.

]]>http://blog.equifax.com/credit/nine-things-to-know-about-banking-at-credit-unions/feed/5Increase Your Home’s Value With These Five Outdoor Upgradeshttp://blog.equifax.com/real-estate/increase-your-homes-value-with-these-five-outdoor-upgrades/
http://blog.equifax.com/real-estate/increase-your-homes-value-with-these-five-outdoor-upgrades/#commentsMon, 08 Jul 2013 11:43:27 +0000http://blog.equifax.com/?p=6328When redecorating your home, it’s important to remember the outside as well as the inside. Upgrading your outdoor space can make your home a more enjoyable space for both you and potential buyers—especially during summer months.

“It’s useless to have a beautiful home inside and a mess outside,” says Jessica Yonker, editor of HGTVGardens.com and a contributor to HGTV.com’s blog Design Happens.

“Pools, fire pits, and patios are always popular upgrades and additions, especially in summer,” Yonker says. “Not only do these upgrades make your home pretty, but beautifying your outdoors can also increase the value of your home.”

Of course, cost is a huge factor, so budget carefully and have a solid plan in place.

It’s safer to overestimate your budget than to plan an exact amount with no wiggle room, Yonker cautions. “When budgeting, make sure to factor in any taxes, service, and labor fees your project may incur, in addition to the materials,” she says. “Before you start a large outdoor project, you’ll want to think about how long you’ll be living in the home. You wouldn’t want to spend $20,000 on an outdoor kitchen if you’re not going to have a few years to enjoy it.”

Popular outdoor upgrades include:

Fire pits. Transform your back yard with a fire pit and make your yard the perfect place to relax on a lazy summer evening or chilly fall night. You can buy a portable fire pit in home improvement stores or install a custom-built, permanent pit.

Outdoor kitchen. “For those who love to entertain, an outdoor kitchen is a must,” Yonker says. An outdoor kitchen can simply have a grilling area, or you can go all out with a gourmet grill, pizza oven, sink, stocked bar, and outdoor flat-screen television.

Patios. To upgrade a poured concrete patio, consider replacing it with concrete pavers, which come in a variety of sizes, shapes, and colors. Also, consider adding a focal point like a paved walkway or fountain.

Landscaping. “Adding a garden or planting trees are quick, inexpensive upgrades that can add beauty to your home,” Yonker says. Consider adding curb appeal and eye appeal with a splash of color and decorative planters on the front porch, patio, and decks.

Paint. “You can also give your outdoors a new look by painting your house a new color or touching up the existing paint,” Yonker advises. A fresh coat of paint can inexpensively transform the look of your home and protect it from sun, rain, and wind, preserving your investment for years to come.

Keep in mind that if you belong to a homeowners association, you’ll need check with it before you start any outdoor projects. The association may have restrictions on allowable paint colors, fence heights, and even types of trees you are allowed to plant. If you’re doing any digging, know where your utility lines are before you pick up the shovel. Call 811, a free, nationwide service that will connect you to a local center to arrange for someone to come out and mark your utility lines.

A Chicago-based writer and editor, Eve Becker writes about personal finance, health and other topics. She is a former managing editor of Tribune Media Services.

]]>http://blog.equifax.com/real-estate/increase-your-homes-value-with-these-five-outdoor-upgrades/feed/2Do I Need Identity Theft Insurance?http://blog.equifax.com/insurance/do-i-need-identity-theft-insurance/
http://blog.equifax.com/insurance/do-i-need-identity-theft-insurance/#commentsThu, 27 Jun 2013 11:40:33 +0000http://blog.equifax.com/?p=6212Dealing with identity theft can be incredibly overwhelming, especially if you don’t know where to turn to resolve credit issues, restore your identity, or recoup your costs. It may take months or even years for you to recover and get your credit records corrected.

Identity theft insurance can help with some of those tasks. In the past few years, more insurance companies have been offering identity theft insurance as a specialized niche product, says Jeanne Salvatore, senior vice president of public affairs and consumer spokesperson for the Insurance Information Institute.

“We’re living in a time where everything is electronic. Unfortunately, there’s a greater risk that your identity can get stolen. If your identity is stolen, it can be extremely time-consuming and complicated to restore, ” Salvatore says. “These types of products are very useful because they help you with additional costs you might incur to restore your identity.”

Identity theft insurance reimburses victims for the cost of restoring their identities and repairing their credit reports. Often, the insurance provides access to services that may help victims of identity theft recover their identities.

The insurance also covers expenses such as phone bills, lost wages, cost for notarizing fraud affidavits or other documents, and certified mail costs, and it also may occasionally cover pre-approved attorney fees.

“Buying this does not prevent a disaster from happening,” Salvatore notes, “But with most products you are going to get assistance, and also reimbursement, for some of the various expenses you might incur because you lost your identity.”

Federal law sets a $50 liability limit for the fraudulent use of credit cards, so the losses you may incur are limited. But restoring credit is a slow and time-consuming process, and identity theft insurance is one way to help consumers cope, according to the National Association of Insurance Commissioners (NAIC).

Check to see if your current homeowners or renters insurance includes identity theft insurance as part of your policy. If not, you may be able to add it as an endorsement for a small fee. You also may be able to purchase a stand-alone policy from another insurer, bank, or credit card company without having another policy with that company. Identity theft insurance generally costs between $25 and $65 per year.

“We’ve seen a trend toward more and more of these types of niche insurance products over the last couple of years,” Salvatore says. “It’s a very narrow, very specific product for people who are concerned that they could be at risk of losing their identity.”

Before you buy, NAIC recommends the following:

Make sure you understand what you are purchasing, and compare the product’s price, coverage, and deductibles among multiple insurers.

Find out what the policy limits are. Most identity theft insurance policies have policy limits of $10,000 to $15,000.

Find out if there is a deductible. Some policies require you to pay the first $100 to $500 of costs incurred for reclaiming your financial identity.

If the policy covers lost wages—taking time off from work without pay to deal with reclaiming your financial identity—verify what limits apply. If you are a salaried employee, you may not have lost wages coverage.

If the policy covers attorney’s fees, verify what limits apply, and find out if legal work needs to be pre-approved by the insurer.

If you suspect you’re a victim of identity theft, the Federal Trade Commission advises that you call one of the three nationwide credit report agencies to request a fraud alert (the agency to which you submit your request will alert the other two), order your credit reports (you are entitled to one free credit report each year from each of the three agencies through annualcreditreport.com), and create an identity theft report.

A Chicago-based writer and editor, Eve Becker writes about personal finance, health and other topics. She is a former managing editor of Tribune Media Services.

]]>http://blog.equifax.com/insurance/do-i-need-identity-theft-insurance/feed/05 Reasons to Update Your Homeowners Insurance This Summerhttp://blog.equifax.com/insurance/5-reasons-to-update-your-homeowners-insurance-this-summer/
http://blog.equifax.com/insurance/5-reasons-to-update-your-homeowners-insurance-this-summer/#commentsTue, 04 Jun 2013 11:58:22 +0000http://blog.equifax.com/?p=5919Summer is the perfect time for barbecues, pool parties and outdoor get-togethers with family and friends. Unfortunately, if you’re not properly insured, an injury on your property could be the end of your summer fun. Learn when and why you may want to consider updating your homeowners insurance policy.
]]>Whether you’re hosting a barbecue, garden party, pool party, or family get-together, there’s nothing quite like entertaining outside in the summer. Many people, recognizing the value of an outdoor entertaining space in the warmer months, have upgraded their decks and patios to enjoy with guests in the good weather.

With all this outdoor entertaining, it’s important to ensure you have the proper homeowners insurance to cover your property in case of damage, and to help protect against any injury liability claims.

“The outdoor space is something that people don’t think about much. If they think about home insurance, they think mainly about their house structure,” says Amy Danise, editorial director of Insure.com.

You may want to review your homeowners insurance policy this summer if:

1. You’ve made recent outdoor improvements and they might not be included. If you’ve added a hot tub, pool, outdoor kitchen, gazebo, or storage shed, check to see if it’s included under your current policy.

Generally, other structures are covered as a percent of your dwelling coverage, Danise says. For example, if your house is insured for $200,000, the other structures on your property are typically insured for 10 percent of that amount.

2. Your outdoor property is in bad condition; you could be on the hook financially if someone is hurt on your property. Check the condition of your outdoor property to help protect yourself from injury claims against your homeowners insurance policy. Make sure your deck and stairs are in good shape. Look for any wood decay, which can weaken the structural integrity of your deck. Fix any areas that need work, and perform ongoing maintenance.

Be aware that some outdoor damage to your property may not be covered under your homeowners policy, especially if the damage could have been avoided with routine maintenance. Damage from termites, insects, birds, rodents, rust, rot, or mold may not be covered.

3. You may not have enough coverage to protect you in the event someone is injured during a summer get-together. Figure out how much liability protection you have, as this can protect you against property damage or bodily injury claims if, for example, someone is injured at your barbecue or hurt in a pool accident. The standard coverage amount is from $100,000 to $300,000. Talk to your insurance professional to determine if this is enough coverage for your situation.

4. You think it may be time to purchase additional coverage. Consider purchasing personal liability umbrella coverage. Because astronomical lawsuits are not uncommon, personal liability umbrella insurance provides additional coverage—on top of your existing auto and homeowners policies—in increments of $1 million.

“It’s a pretty cheap way to buy extra liability,” Danise says. “And it generally goes on top of your home and auto insurance.”

Umbrella policies go into effect after the main liability limits on your homeowners or auto policy are exhausted. So you will need to have a high liability, like $300,000, in your main policy, and then you can buy an umbrella policy to extend the amount, she says.

5. You aren’t taking advantage of available savings. Review your homeowners policy periodically to make sure you are familiar with its coverage and to ensure you are taking advantage of any applicable discounts. Don’t get caught by surprise. “Check on your deductibles to make sure you’re aware of how much you would have to pay out if you have property damage, like a fire,” Danise advises.

This summer, enjoy your outdoor entertaining space—just make sure it’s adequately covered under your homeowners insurance to prevent a dreamy summer day from turning into a nightmare.

A Chicago-based writer and editor, Eve Becker writes about personal finance, health, and other topics. She is a former managing editor of Tribune Media Services.

]]>http://blog.equifax.com/insurance/5-reasons-to-update-your-homeowners-insurance-this-summer/feed/3Tips for Giving Wedding Gifts on a Limited Budgethttp://blog.equifax.com/family-money/tips-for-giving-wedding-gifts-on-a-limited-budget/
http://blog.equifax.com/family-money/tips-for-giving-wedding-gifts-on-a-limited-budget/#commentsMon, 29 Apr 2013 16:49:49 +0000http://blog.equifax.com/?p=5323While newlyweds take their first wedding dance, a delicate budgeting dance can be going on in the guests’ heads—especially if they had to pay for travel expenses as well as numerous engagement, bridal shower, and wedding gifts.

As stressful as it sometimes can be, it’s possible to keep wedding expenditures in check by thinking of ways to stretch your budget. Luckily, there are many creative ways to make your money go further while still helping the newlyweds start their life together, says Jamie Miles, an editor of popular wedding website, TheKnot.com.

“Couples are aware of the economy and how it’s affecting different people,” Miles says. “They’re going to be understanding if you have to stay within a budget and get something a little less expensive off their registry. Yes, there are bridezillas out there, but at the end of the day, they’re going to understand.”

First, start by shopping early, before the couple’s gift registry is picked over, she says.

“The key to saving is to buy early. Generally about 52 percent of the items on a couple’s registry are going to be under $50,” she says. “If you go within the first weeks, you are still going to be able to buy items that are under $50.”

While The Knot’s Bridal Registry Study shows that friends typically spend $79 on a wedding gift and family members average $146, it’s fine to give an amount that’s comfortable for you, Miles says. “If you’re in the friend realm, it’s going to be a little more acceptable to get something less expensive off their registry.”

“Say that you settle on something in the $20 to $40 range, that’s OK. You can also personalize it a little bit more,” she says. “Say you get them a wine rack off their registry, you can add a couple bottles of their favorite wine. That makes the gift a little more personal, and it’s still going to be affordable.”

Another way to stretch your dollar is to team up with friends to contribute smaller amounts to a group gift. Some 70 percent of couples receive at least one group gift, according to The Knot’s Bridal Registry Study. “It might end up being a little more substantial of a present, but it’s not going to affect your wallet as much as you buying that substantial present alone,” Miles says.

Even if your budget is limited, wedding experts recommend getting a gift from the couple’s registry instead of trying to find a similar item at a lower-priced store.

“I would definitely recommend getting something from the registry. That’s what they need. The registry has been created for a reason. It’s like telling someone what you want for your birthday and them totally ignoring you,” Miles says.

“If they’re registered for salad bowls, they would like those salad bowls. They don’t want other salad bowls from a different place. I would not go to a lower-priced store. I would just get fewer items off their registry that you can afford,” Bernstein says.

The idea is to make a gift special, even if your budget is smaller, she says.

“If you don’t have a big budget to give a wedding gift, a good idea is to donate to a charity that’s meaningful to a couple in their honor,” Bernstein says. “A donation is always appreciated.”

Most charities will send a card to the couple letting them know that a donation has been made in their honor, usually without disclosing the specific amount. This can help you feel comfortable staying within a limited budget.

Another alternative is to give a meaningful personal gift, such as a framed photo of the couple, a framed copy of their wedding invitation, a gift certificate to their favorite restaurant, or a contribution to their honeymoon registry. You can also give a gift card to the store where the couple is registered so they can buy items after their wedding. “They might still need two forks, but you might feel weird just getting them two sets of silverware,” Bernstein explains. “They can use [a gift card] for what they want after the wedding to fill in the holes.”

Of course, when budgeting for wedding season, there’s more than the wedding gift itself. The wedding gift usually amounts to 60 percent of the total gift expenditure, with 20 percent for the engagement present and 20 percent for the bridal shower, Miles says.

Plus, for out-of-town weddings, there’s also the cost of airfare and hotel. Make a list of all possible expenses, including all gifts, dress, shoes, hair, makeup, hotel, and airfare. Then figure out a total expenditure level that is right for you.

Whatever your gift to the couple is, Miles says, “It’s going to help them as newlyweds start a life together. They’re going to be thankful, regardless.”

A Chicago-based writer and editor, Eve Becker writes about personal finance, health and other topics. She is a former managing editor of Tribune Media Services.

]]>http://blog.equifax.com/family-money/tips-for-giving-wedding-gifts-on-a-limited-budget/feed/0Reducing Unsolicited Mail And Email To Your Businesshttp://blog.equifax.com/small-business/reducing-unsolicited-mail-and-email-to-your-business/
http://blog.equifax.com/small-business/reducing-unsolicited-mail-and-email-to-your-business/#commentsMon, 22 Apr 2013 12:41:55 +0000http://blog.equifax.com/?p=5165With a proliferation of telemarketing calls and business solicitations, small businesses seem to be constantly fending off unwanted marketing offers. Sorting through solicitations can take up valuable working time for a small business, and opportunities can be lost if you cut short a customer call only to find out that on the other line is a telemarketer who wants to sell you toner.

While most federal regulations apply to business-to-consumer and not business-to-business telemarketing, small businesses can still cut down on unwanted solicitations. These resources may not stop the problem completely but could at least cut down on the number of robocalls—pre-recorded messages that come from a computerized auto-dialer—and spam emails.

Telemarketing calls

Telemarketers are prohibited from calling personal phone numbers listed on the National Do Not Call Registry (with the exception of certain nonprofit and political organizations). If you use your home or cell phone for business, this could be to your benefit.

You can list your home phone or cell phone on the Do Not Call list as long as that phone number is primarily used for personal calls and is not owned by a business, explains Roberto Anguizola, assistant director of the Federal Trade Commission’s Division of Marketing Practices.

“If a cell phone or home phone is primarily a personal number but occasionally used for business, a consumer is entitled to list that number on the Do Not Call list,” Anguizola says. But if you use your home phone for work and distribute that number to a trade association, then you might expect your number to get out to other trade organizations, and you will likely see an increase in unsolicited phone calls.

According to the Federal Communications Commission’s (FCC) website, “While you may be able to register a business number, your registration will not make telephone solicitations to that number unlawful.” So if your land line or cell phone is registered to your business, you may still get calls.

Keep in mind that under the Federal Trade Commission’s (FTC) Telemarketing Sales Rule, business-to-business calls for sales of nondurable office or cleaning supplies are restricted. Examples of nondurable office or cleaning supplies include paper, pencils, solvents, copying machine toner, and ink—anything that can become depleted and must be replaced.

The rule is in place, Anguizola explains, to prevent “toner phoner” office supply scams in which businesses are bilked to pay for goods and services they never ordered. If you feel this rule is being violated, you may want to contact the FTC directly.

Unwanted email

The federal CAN-SPAM Act requires that a commercial emailer give each email recipient an opt-out method, such as a return email address or a link allowing you to request that it stop sending future email messages. If you request to opt out, that company must stop emailing you, whether for business or personal email accounts.

The Direct Marketing Association (DMA) also has an Email Preference Service (eMPS) to help reduce unsolicited commercial emails you receive from DMA members. Registration is free and good for six years, but, according to the DMA’s website, “does not apply to advertising emailed to your business address.” The eMPS therefore will apply mostly to small business owners who use their personal accounts for correspondence.

And although registration will get you off of some email lists, it won’t completely clean up your email inbox because not all advertisers participate in the service. If you’re a small business owner who uses a business email account to correspond with clients, you may be better off just setting up a good spam filter.

Junk mail and faxes

Unsolicited advertisements sent to fax machines are restricted under the Junk Fax Prevention Act of the Telephone Consumer Protection Act (TCPA). Specifically, the policy restricts the use of “any telephone facsimile machine, computer, or other device to send an unsolicited advertisement to a telephone facsimile machine” for residential as well as business fax machines.

The Act does permit the sending of advertising via fax to both individuals and businesses “with which the sender has an established business relationship.” However, the rules require senders to provide notice and contact information on the fax that gives recipients the ability to opt out of future faxes from the sender.

In addition to the eMPS, the DMA maintains a Mail Preference Service (MPS) for consumers to opt out of receiving unsolicited commercial mail from national companies that participate in the service.

But the service isn’t designed for businesses, explains Jerry Cerasale, senior vice president for government affairs of the DMA. “The problem with requests to stop business-to-business marketing is: Who is authorized to request it? Does it apply to the entire company? If it applies to an individual in the company, does it apply to that individual’s replacement when he or she leaves the company?” he says.

Instead, Cerasale explains, if a small business is receiving unwanted mail, the business should contact the marketer and request that the marketer stop sending any more advertising.

While you may never be able to completely rid yourself of telemarketers and spam, these services may be able to help you cut the problem down.

A Chicago-based writer and editor, Eve Becker writes about personal finance, health and other topics. She is a former managing editor of Tribune Media Services.

]]>http://blog.equifax.com/small-business/reducing-unsolicited-mail-and-email-to-your-business/feed/0The ABCs of Budgeting for School Fundraisershttp://blog.equifax.com/family-money/the-abcs-of-budgeting-for-school-fundraisers/
http://blog.equifax.com/family-money/the-abcs-of-budgeting-for-school-fundraisers/#commentsMon, 15 Apr 2013 11:15:29 +0000http://blog.equifax.com/?p=5192First, there’s the school wrapping paper sale. Then Girl Scout cookie sales. Then the big spring gala. They are all worthy causes, of course, but how do you budget for seemingly constant school fundraisers, especially if you have multiple kids in different schools?

As shrinking state and federal budgets take their toll on schools, parents are stepping up and funding more of the extra programs that enhance their schools—programs like partnerships with local theater companies, field trips, and new computers for classrooms.

For some families, it’s hard to balance multiple requests for time and money. But parents don’t need to break the bank to support their schools, experts say.

“No one is expecting a parent to go into debt for a fundraiser,” says Tim Sullivan, president and founder of PTO Today, a magazine and website for school PTOs and PTAs. “Fundraisers work best when there’s a broad base of modest support. As a parent, you’re not solely responsible for funding the field trips. No one’s expecting a parent to hit the credit card and be paying it off for six months because a kid needs a field trip.”

Even small contributions help support a good cause, says Laura Mueller, fundraising chair for her school’s fundraising group, Friends of Bell School.

“With our school being a public school, parents have to fund all the extra programs to make their school great,” Mueller says. “They need math books, projectors, technology—anything that helps teachers do their jobs better. I feel if I make our school great, that’s my priority. That’s where all of my money goes.”

For school fundraisers that sell products, like wrapping paper or cookies, typically 40 percent to 60 percent of the money raised goes directly to the school, Sullivan says. Of the remainder, some money goes to the actual product you receive (the wrapping paper or cookies) and some goes to a fundraising company.

Parents who don’t want another roll of wrapping paper can choose to give a cash contribution to the school or PTO instead.

“There’s not a school or PTO that wouldn’t take a cash donation. Support is support; it’s great,” Sullivan says. While the wrapping paper fundraiser might be counting on a certain amount of sales volume, “if you want to support [the school] any way you can, go for it.”

“People all want to know where their money goes—every single dollar,” Mueller says. “We work really hard, and there’s a huge administrative team to make sure that every dollar goes where the parents want it. It’s not going to overhead or administrative costs, but it’s actually going to a book. That’s rare for a fundraiser.”

Not many schools offer such a targeted approach, but parents can talk to their school or their PTO to see if a targeted “wish list” fundraiser would work in their community.

Parents can also ask the PTO how many fundraisers it runs each year. Then parents can set a yearly donation budget and choose whether to participate a little bit in each event or make a bigger contribution to one event, if they are able.

“More typical for a family with budgeting concerns is: ‘I’ve got four kids. I’ve got three soccer teams, three basketball teams, two different schools. I can’t be the lead fundraiser for eight different causes,’” Sullivan says, speaking from his personal experience. “We wouldn’t make it with so many kids and so many activities. There aren’t enough hours in a day or dollars in our pocket to do it all.”

Sometimes it takes a village to complete the whole picture.

“Both time and money are different for every family. There are families who have no extra time and no extra money. And there are families that have both, if they’re very lucky,” Sullivan says. “I talk about it with PTOs a lot. There are some PTOs that put things out there, like if you can’t help, then your kid doesn’t get the field trip. Whoa, hold on: The mom is working 50 hours a week and is alone with three kids. Her time and money is very different than yours.”

If it’s possible to contribute an amount that’s comfortable for you, it can help cover parents who aren’t able to contribute, he says.

“For me, working at a school, what am I volunteering for?” Sullivan asks. “It’s so all the kids can have great [resources]. Not only the kids whose parents can help…. We’re all in this together.”

A Chicago-based writer and editor, Eve Becker writes about personal finance, health and other topics. She is a former managing editor of Tribune Media Services.

]]>http://blog.equifax.com/family-money/the-abcs-of-budgeting-for-school-fundraisers/feed/0Small Business Financing: Understanding SBA-Backed Loanshttp://blog.equifax.com/small-business/small-business-financing-understanding-sba-backed-loans/
http://blog.equifax.com/small-business/small-business-financing-understanding-sba-backed-loans/#commentsThu, 07 Mar 2013 23:02:04 +0000http://blog.equifax.com/?p=4908There’s a misconception that many small business owners have about loans made through the U.S. Small Business Administration (SBA). They think that the government hands out money to struggling small businesses. It doesn’t.

In fact, the SBA guarantees loans to small and mid-sized companies. Banks and other lending institutions make the loans themselves.

SBA-backed loans can encourage banks to lend to small businesses, giving them access to capital to help start or grow their businesses. But it’s important to understand the intricacies of the loans, says Denise Ching, associate director of the Illinois Small Business Development Center at UIC, part of the network of regional Small Business Development Centers that are funded by the SBA and state and local governments to provide free services to small businesses.

“The SBA is not a direct lender. [It provides] incentives for lenders to make more loans,” Ching says. “It’s up to lenders to decide whether they want to use the SBA loan guarantee or not.”

An SBA-backed loan can be a good solution for a young or start-up business that is turned down for conventional underwriting because it has insufficient collateral, it has been in business for less than two years, or it is funding a business acquisition, among other situations.

But an SBA loan guarantee is not a magic bullet. “That guarantee is not meant to cover up a bad credit decision,” Ching says. “It’s meant to help where there’s maybe one hole, but not when you’re covering five holes, you’re in trouble, and you’re losing money—that’s not when you get an SBA loan.”

“A loan is not to save you from a poorly managed business,” she adds. “You have to be able to pay it back. You have to be able to demonstrate in your financial statements that you can afford those loan payments every month for the next three to five years.”

To improve your chance for a SBA-backed loan, get your financial house in order by reviewing your personal credit history and assembling a complete financial package to make the case for the stability of your company. View the SBA loan application checklist on the SBA site and be prepared with the following tips:

Understand the types of SBA loans. The most common, most flexible type of SBA-backed loan is the 7(a) Loan Program, which can be used for a variety of purposes, including buying machinery, equipment, or furniture; purchasing real estate; making leasehold improvements; generating working capital; or even refinancing debt. There are different types of loans within the 7(a) category, including special purpose loans and express programs like the SBAExpress, which promises a response to an application within 36 hours.

Another type of SBA-backed loan is the CDC/504 Loan Program. This provides approved small businesses with long-term, fixed-rate financing used to acquire fixed assets such as major machinery or equipment for expansion or modernization.

And finally, the Microloan Program provides small (average $13,000) short-term loans to small businesses and some not-for-profit child-care centers through community-based organizations with experience in lending as well as management and technical assistance.

Gather financial statements. Assemble a complete application package including business and personal tax returns from the past three years, profit and loss statements from the past three years (for an existing business), projected financial statements, a recent balance sheet, and the company’s business plan, reference letters, business license or certificate, and loan application history. A complete package should give a lender a good feel for your company and for what you will use your loan.

Consider your collateral. The SBA requires that the applicant put up all available collateral for loan repayment. If business assets do not fully secure the loan, personal assets may be considered as collateral, including the equity in your home or any assets jointly owned with your spouse. The SBA requires personal guarantees from people who own 20 percent or more of the business, as well as from other individuals who hold key management positions.

Seek assistance. The SBA funds a broad network of regional Small Business Development Centers and SCORE mentors that help small businesses with free programs. These services provide valuable advice in preparing SBA loan applications.

Contact lenders. Find a bank, credit union, or other lender that works with the SBA. The SBA has a list of lenders by state, with a chart of the number of loans the lenders make along with the overall loan amount. Ching suggests dividing the loan amount by the number of loans to come up with an average loan size for each bank so you can match your needs with a lender that handles similar-sized loans.

A Chicago-based writer and editor, Eve Becker writes about personal finance, health and other topics. She is a former managing editor of Tribune Media Services.

]]>http://blog.equifax.com/small-business/small-business-financing-understanding-sba-backed-loans/feed/1The Price Is Right: Determining Pricing for Your Small Businesshttp://blog.equifax.com/small-business/determining-pricing-for-your-small-business/
http://blog.equifax.com/small-business/determining-pricing-for-your-small-business/#commentsThu, 07 Mar 2013 16:50:47 +0000http://blog.equifax.com/?p=4887For a small business, pricing products and services can be a difficult task. Figuring out your costs can be challenging, but you’ll also need to take into consideration profits, competition, value, and brand image, as well as how you want to position yourself in the marketplace.

Pricing communicates quality, says Bryan Ziegler, director of the Small Business Development Center at Indian Hills Community College in Ottumwa, Iowa, which offers free advice to small businesses in the region.

Often, entrepreneurs tell Ziegler that they are starting a new business that will be of better quality and that will have lower prices than the competition. “To me that’s wrong or backwards,” he says. “If you have better quality, one of the ways to communicate quality to customers is through a higher price…. Low price communicates low value.”

People often will purchase services even if the price is higher because they want a high-quality product or better service, Ziegler says. The Iowa Small Business Development Center offers a useful tip sheet titled “How To Price Your Products and Services,” which includes tips for determining costs and assessing your competitive position.

It’s important to research the competition, says Mary Lysaught, a SCORE mentor with an extensive background in marketing. SCORE, a nonprofit association that helps small businesses grow through education and mentorship, offers free or low-cost programs and advice to small businesses.

“I want [entrepreneurs] to focus on the competition,” Lysaught says. “I want them to know their competitors just like they know themselves. Whether it’s privately held or whether it’s publicly held, we give them tools to search as deeply as they possibly can on all aspects of that competitor, not just pricing.”

After researching the competition, it’s important to think about your desired brand image and quality, says Lysaught. “We look at positioning strongly. When you look at positioning versus your competition in an open marketplace, the [brand] image has got to be there. That image sometimes drives the level of pricing that you’re shooting at.” In addition, Lysaught emphasizes the synergy of the “4 Ps”—product, place, pricing, and promotion.

To determine a price for your product or services, you’ll need to first capture your costs. “Be conservatively low on the volume you might sell and a little high on [estimating] overhead, so you have the ability to cover all costs,” Ziegler says.

For services, figure out an hourly rate and how many hours a specific job will take, and then convert that into flat per-project fees, Ziegler advises. “Many people start out thinking they should charge by the hour. I try to get people to think about charging by the job. You actually can create more revenue,” he says.

Some suggestions to help you get the price right:

Determine your expenses. If you are selling a retail product, your expenses include the material and manufacturing costs to produce the product, as well as labor costs.

Set a profit margin. You’re entitled to earn a profit over your salary and expenses. While there is no standard profit percentage, a 10 percent to 20 percent profit is common.

Adjust prices as necessary. Your price does not need to be set in stone. Keep track of your expenses, sales, and overhead costs. Once you’ve gone through a trial period and your experience builds, you may be able to reduce your costs and prices. Or you may need to increase them over time because of inflation or industry trends.

Set your price above the competition. Small businesses can sometimes justify charging a higher price because of better quality and better service. If your price is above the competition, make sure your marketing materials reflect that higher quality and higher satisfaction as well as personalized service.

Set your price below the competition. If you have a low-end competitive pricing strategy, reduce your costs by closely controlling inventory, limiting product lines, and offering limited services. Be aware that you must constantly monitor and adjust costs, which can expose your business to pricing wars.